Help request for analysis

[Jack Srimani]

Hi,
I am considering purchasing a four unit property that is in decent shape. The utility is paid by the tentants. The rents are 550, 550, 600, 600. Tax is 3500. Insurance is 700.Building is one hundred years old. New plumbing and electrical done. Downstairs tenants are for three years. Upstairs tenants are for one year. Lease is month to month. The asking price is 150000. This is way too high. I am getting a conventional loan for 4.5 percent with tweny five percent down. I would like to know what is the maximum price I can go to get the best return given the above details. I would apppreciate any help. I am thinking to offer 10000.However I am not sure what is the maximum to go before walking away from this investment property. Thanks.

[Will Barnard]

Using a rule of thumb of 2% of the gross monthly rents (which is $2300), you could pay up to $115k for this property.